What is High-Risk Cover Health Insurance?

Introduction

The first step to ensuring a healthy life is purchasing health insurance coverage. You may encounter a number of unforeseen medical circumstances throughout your life, and Health insurance with a high-risk cover will protect your finances in case of unexpected medical conditions.

What is high-risk cover health insurance?

High-risk cover health insurance is a form of health insurance plan created to protect people who are deemed high-risk due to pre-existing diseases or lifestyle choices that raise the likelihood that they may experience health issues.

Because the insurance company is taking on a bigger financial risk by covering people with pre-existing conditions or high-risk lifestyles, high-risk health insurance policies typically have higher premiums and deductibles than standard health insurance policies.

Based on the proposer’s risk, the insurer underwrites a health insurance policy. Each proposal is categorised as either low risk, moderate risk, or high risk and is handled appropriately. 

Young, healthy, normal individuals without any illnesses or unhealthy behaviours are deemed as low-risk profiles, whereas those with slightly higher risks are categorised as moderate-risk profile. According to the insurer’s perspective, a high-risk profile is critical and is subjected to careful underwriting. 

Factors that make an individual a high-risk candidate

The following points classify the high-risk profiles and how the insurance company deals with such situations.

Family history

Any hereditary diseases are determined by considering your family’s medical history. Your request for health insurance coverage may be considered high-risk if your family history has heart problems.

Even if you don’t have a heart condition at the time of the application, the insurer might exclude coverage for heart-related illnesses.

Pre-existing conditions

 Any condition that a person already has before purchasing health insurance, such as high blood pressure, diabetes, heart problems, or another, is referred to as a pre-existing condition. The insurance provider categorises it as a high-risk group if the severity of these conditions is severe.

Although there is a waiting period for pre-existing conditions, the insurance company may completely exclude such conditions from coverage or raise the premium. If the pre-existing conditions are serious, the insurance company may even reject the application.

Lifestyle choices

If a person smokes, drinks, or chews tobacco regularly, it is considered a high-risk situation. Chain smokers and alcoholics pose significant health risks, and any injury caused by alcohol is already typically excluded. If you fall into this risk category, you might have to pay a higher premium and medical emergencies caused by these habits might not even be covered by your medical insurance.

Occupation

 Health insurance providers also take into account the risk associated with your line of work. A person with a high-risk profile is one who works in a dangerous line of work. Aeronautics, mining, teaching adventure sports, and other high-risk professions are all associated with a significant risk of medical problems. 

The cost of such high-risk applications is substantial, and coverage for such applicants typically disallows coverage for any medical emergencies that might arise due to the policyholder’s line of work.

The categories mentioned above are regarded as high-risk categories, and insurance companies have a number of procedures to deal with application materials for policies that indicate high-risk profiles. In such a situation, the insurance provider could

1· Limit the coverage extent,

2· Reject the policy application

3· Increase the premium amount

If you fall into the high-risk category, the insurance company’s safety precautions shouldn’t deter you as a customer. It’s essential to disclose all relevant information when purchasing a health insurance policy.

At the time of application, you run a significant risk of having your health insurance claim denied if you don’t tell the insurance company any important details about your lifestyle choices or medical issues.

Ways to purchase health insurance with high-risk Cover

Finding a health insurance plan can be difficult if you fall into the high-risk profile. Following are some of the best methods to purchase health insurance with high-risk covers –

For people with specific ailments, including diabetes, heart disease, hypertension, and other medical concerns, certain insurance companies offer specialised health insurance policies that cover these conditions.

Insurance companies consider a number of factors, such as the quantity and frequency of tobacco use as well as the length of usage and addiction. After a certain number of years, the insurance company may not impose an additional premium and will classify the policyholder as a non-smoker if the policyholder decides to stop smoking.

A top-up policy that serves as individual health insurance can be obtained. A top-up plan offers coverage for medical expenses after reaching the limit, unlike a conventional health insurance policy that only reimburses costs up to the predetermined amount covered. 

Top-up insurance policies are inexpensive because deductibles are covered. Additionally, it’s essential to secure coverage for expensive medical costs incurred due to illnesses or diseases that aren’t covered by the current medical insurance plan.

Importance of top-up plans in health insurance

The cost of medical care has been rising gradually along with medical understanding. Your savings and financial resources will certainly be strained as medical costs grow. Sometimes, a single health insurance plan is found to be insufficient, especially in the situation of a family floater, when the insured amount is split among four people.

In such circumstances, it’s imperative to either purchase two insurance policies or increase the coverage. Health insurance companies have started to offer top-ups as an addition to the standard policy to boost the amount covered or overall cover value.

Top-up health insurance plans are created to give you extra protection in the event that your existing health insurance plan has reached its limit or is unable to cover all of your medical expenses. A top-up plan for health insurance is meant to enhance your current coverage. Most importantly, top-up plans can be purchased for a low price without making any sacrifices.

Conclusion

Although the high-risk health insurance plan is more expensive than the standard health plan, it is still much less expensive than having to cover all of your hospital and medical expenses out of pocket. Purchasing a health insurance policy with high-risk coverage is advised if you are a high-risk profile.

FAQ’s